http://www.rssboard.org/rss-specificationHome en-uswww.solidginc.comPatrick Arnoldnohttp://www.solidginc.comWed, 19 Dec 2018 07:18:23 GMTHome Home Fri, 14 Jul 2017 15:36:52 GMTMarket-Opshttp://www.solidginc.com/marketopsFri, 20 Jul 2012 05:00:00 GMTPatrick ArnoldThere is nothing worse than being sold something that turns out to be completely different than what you expected.Between supply and demand there is an entire network of intermediary actions purely designed to connect supply with its corresponding demand. Marketing and operations are two such intermediaries. In transportation and logistics there are providers of transportation products: ports, warehouses, carriers, etc; and there are those who demand their services: the shippers. ]]>There is nothing worse than being sold something that turns out to be completely different than what you expected.Between supply and demand there is an entire network of intermediary actions purely designed to connect supply with its corresponding demand. Marketing and operations are two such intermediaries. In transportation and logistics there are providers of transportation products: ports, warehouses, carriers, etc; and there are those who demand their services: the shippers. There is nothing worse than being sold something that turns out to be completely different than what you expected.

Between supply and demand there is an entire network of intermediary actions purely designed to connect supply with its corresponding demand. Marketing and operations are two such intermediaries. In transportation and logistics there are providers of transportation products: ports, warehouses, carriers, etc; and there are those who demand their services: the shippers.

Suppliers of transportation and logistics services need effective marketing to gain access to their customers. However, they need effective operations in order to keep these customers and grow their market. Unfortunately in many transportation and logistics organizations marketing, sales and operations are separated from one another and this creates problems.

It is paramount for the sales and marketing arms of an organization to know what they can truly deliver on such that the customer is not mislead. It is just as important for the operations division to know what is expected of them and to deliver.

At Soli DG, Inc. we combine operations and marketing to ensure that our clients experience healthy and sustainable growth. As organizations get more comfortable with this setup there is less waste created and more profit from each dollar spent.

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]]>http://www.solidginc.com/marketopsStaying True to Transportation Fundamentalshttp://www.solidginc.com/staying-true-to-transportation-fundamentalsMon, 18 Jun 2012 05:00:00 GMTPatrick ArnoldIn the last post we discussed the three fundamentals of Transportation & Logistics decision making: Cost, Consistency and Transit Time. Here we will be contemplating the results of staying true to these fundamentals as a means to identify the appropriate mode of transport... ]]>In the last post we discussed the three fundamentals of Transportation & Logistics decision making: Cost, Consistency and Transit Time. Here we will be contemplating the results of staying true to these fundamentals as a means to identify the appropriate mode of transport... In the last post we discussed the three fundamentals of transportation and logistics decision making: cost, consistency and transit time. In this post, we will be examining the affect of applying these fundamentals to identify the appropriate mode of transport. While these principles may not be universally applicable, a well-rounded understanding of them is universally useful.

The weight given to each of the three fundamentals depends on the freight. This concept is illustrated below:

Freight Type

First Priority

Second Priority

Third Priority

Clothing & Shoes

Transit Time

Consistency

Cost

Wood Pulp

Cost

Consistency

Transit Time

Goods for Manufacturing

Consistency

Cost

Transit Time

Refrigerated Freight

Transit Time

Consistency

Cost

As is shown above, certain freight will prioritize a quick transit time over low cost, where others will need consistent delivery of freight to be paramount. Each mode of transportation can be broken down in regards to its ability to match these characteristic needs, as shown below:

Mode

Best Performance Measure

Fair Performance Measure

Worst Performance Measure

Air

Transit Time (Fastest)

Consistency

Cost (Most Expensive)

Truck

Transit Time

Consistency

Cost (Most Expensive Land Mode)

Rail

Cost

Transit Time

Consistency (varies upon provider)

Water

Cost (least expensive)

Consistency

Transit Time (slowest)

Air, as a freight transport option, furnishes a considerably faster transit time than terrestrial modes of transportation, but does so at a significantly higher cost. Due to this characteristic, it is not viable under normal circumstances to blend air transport into an intermodal transportation network. Consequently, truck, rail, and water are what will be examined in this post.

In a (hypothetical) closed system - where federal/state transportation policies do not artificially sustain one mode versus another - the demand priorities of each freight type would naturally match up with the corresponding performance measures of each mode of transport (e.g. all wood pulp would move by water). In order for this scenario to play out, each of these three modes of surface transportation would have to be available on a given trade lane.

Intermodal transportation is in place because the transportation and logistics community has evolved to recognize the values of a seamless network of transportation options for the customer. To illustrate this fact, here is an example: The customer (Sample Enterprises) is looking to do a long, overland move, but is not located directly on a rail line. However, SE is within a short truck haul of an intermodal rail facility. The trucking company can haul SE's freight short haul to the rail facility, and do another short haul from the end rail station to the destination. This moves SE's freight at the lowest possible cost. Trucking companies have worked well with the rail community to exploit this fact and apply fuel savings and a reduction of driver hours when it makes sense for them to rail their customer's freight over the longest distance possible and truck the front and back end of the freight move. However, this process is not often very well understood.

Matching demand with performance characteristics of multiple modes of transport is the ultimate goal in long-term planning for economic sustainability for any country.

One challenge to adhering to transportation fundamentals in the United States is a lack of the low-cost waterborne mode of transport. As roads and bridges are expensive to build and maintain, they should not be treated like railroads or waterways.

It is important to note that freight types that have "cost" as their number one priority often are operating on small margins. When this is the case, the shipper is seeking to fit as much freight as possible in every unit of transport - this means loading heavy whenever possible. The more weight that is shifted to our roads and bridges, the faster they deteriorate. In order to optimize the movement of freight while minimizing waste, we must find a way for our shippers to access larger margins for every bit of product they produce or handle.